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V1219-14 7 May 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · cánones

Payments for pre-installed ATM software may not be taxable in Spain if classified as business benefit

A company inquired whether payments to an Irish entity for pre-installed ATM software were subject to Spanish taxation. The DGT determines that, as the software is standard with no adaptation or reproduction rights, the payment qualifies as a business benefit and not as a royalty.

The question raised

Whether the payments made by the taxpayer to the Irish company for the purchase of automated teller machines for subsequent sale in Spain, specifically regarding the portion corresponding to the pre-installed software, are subject to taxation in Spain.

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